Proponents Need to Demonstrate The Value of Location-Based Services To Consumers

Supporters of location-based social networking need to convince consumers about the value of the system as an advertising platform. While technology companies, investors, marketers, and advertisers are excited about building location-based marketing services, only 4% of U.S. adults who use the Internet are using the services, according to the Internet and American Life Project study by Pew Research Center. Nevertheless, Foursquare and Gowalla were able to raise money to finance their efforts to develop location-based services, which let users login to stores and establishments using their mobile phones to receive coupons or stay in touch with friends. With a location-based marketing platform, consumers use their personal data to help pay for products and services, a practice that may not appeal to some due to privacy and security concerns.